Germany’s massive defense build-up is primarily benefiting domestic companies like Rheinmetall, while the U.S. Is being left behind.
Germany is undergoing its largest military transformation since the Cold War, moving away from a historically cautious approach to defense spending. A substantial investment package of 600 billion euros – exempt from the country’s debt brake and exceeding even infrastructure spending of 500 billion euros – is positioning Germany as a major military power in Europe.
Contrary to initial expectations that a significant portion of these funds would be directed towards the United States, the situation has shifted. According to reports from Bloomberg citing government sources, Berlin is now awarding approximately 85 percent of contracts to domestic companies. By leveraging legal flexibilities, the country is bypassing Europe-wide tenders to directly commission German firms, with the aim of bolstering local innovation and securing technological sovereignty.
